Society is increasingly relying on the use of credit for purchasing and decision making. Today, good credit cards are not just for getting credit cards or loans. More and more companies believe that you must have a good reputation before offering products or services to you.

5 things that good reputation may affect

Where you live and what you pay: Before you can buy a house, mortgage lenders want to know that you won't default on your mortgage. If you don't have good credit, the lender will think that giving you a mortgage is risky. If you are approved for a mortgage, your credit will affect your interest rate, which directly affects your monthly mortgage payments. Bad credit can mean higher mortgage payments. To make matters worse, your mortgage application may be rejected because of your bad credit.

Don't think that your credit is not important because you don't want to buy a house now. The landlord also uses your letter of credit to decide whether to rent it to you. The landlord thinks your lease is a loan. You are loaned to a place to live, the landlord wants to know that you will repay the loan. If you don't have a good reputation, you may be rejected because of an apartment.

What car do you drive and pay for the car: Unless you have cash to buy a car, you must get a loan. Your credit not only affects your eligibility for a loan, but also affects the amount and interest rate of the loan. In general, creditworthy loan applicants are eligible for a larger loan amount and a lower interest rate.

Bad credit limits your choice. If you have a bad loan, fewer lenders will work with you, and those lenders will charge a higher interest rate on your car loan. A higher interest rate means paying a higher ticket every month.

Job Search: Many employers conduct credit checks during the recruitment process. (Note that employers check credit reports instead of credit scores.) If you don't show a sense of financial responsibility, future employers may hesitate to hire you. For example, an employer may think that your debt level is too high to pay.

Some employers also check credit scores, especially financial related or administrative positions, before promotion or salary increase.

It will affect your ability to start a business: many people have their own dreams of starting a business. Most startups need a lot of cash, and this cash may not be what you don't have. In this case, you need to get a small business loan. In addition, you need to have good credit to get a commercial loan.

Other monthly bills: It may be a little shock to know that you need your credit to establish a utility service. Your power company claims that you have to borrow a month of electricity service. So, before turning on your power, the company will check if you have a good reputation. It is suitable for most utility services, including cable, telephone, water, and even cell phones.

Since your credit is defined by how you paid (or did not pay) your bills, many businesses - landlords, mortgage lenders, utility providers, and even employers - use your credit to predict your future financial responsibilities. Any time you need to borrow money or even service, your credit will be questioned. This is why it is so important to maintain a good reputation.